From the following information, prepare the Income and Expenditure account for the year ended on 31-03-2015 of Bhopal Town Club.

Receipts and Payments Account

| Receipts | Amount (Rs.) | Payments | Amount (Rs.) |
|---|---|---|---|
| To Subscriptions | 20,000 | By Buildings | 40

Question

From the following information, prepare the Income and Expenditure account for the year ended on 31-03-2015 of Bhopal Town Club.

Receipts and Payments Account

| Receipts | Amount (Rs.) | Payments | Amount (Rs.) |
|---|---|---|---|
| To Subscriptions | 20,000 | By Buildings | 40,000 |
| To Donations | 50,000 | By Furniture | 10,000 |
| To Life membership fees | 3,000 | By Sports material | 5,000 |
| To Income on sports | 17,000 | By Expenditure on sports | 7,000 |
| To Sundry receipts | 5,000 | By Newspapers | 1,500 |
| To Sale of old newspaper | 500 | By Land maintenance expenditure | 4,000 |
|  |  | By balance c/d | 28,000 |
| Total | 95,500 | Total | 95,500 |

Additional Information: (i) Capitalize 50% of donations and life membership fees. (ii) Outstanding subscriptions Rs. 5,000. (iii) Provide for depreciation on furniture and buildings 5% and on sports materials 10%.

Accepted Answer

>

> [!TLDR]
> Prepare the Income & Expenditure A/c for Bhopal Town Club. Revenue incomes total Rs. 74,000 (subscriptions 25,000 incl. outstanding, 50% of donations 25,000, 50% of life membership 1,500, sports income 17,000, sundry 5,000, old newspaper 500). Revenue expenses total Rs. 15,500 (sports expenditure 7,000, newspapers 1,500, land maintenance 4,000, depreciation 3,000). Surplus = Rs. 58,500.
>
> This is a TS Intermediate 2nd-year Accountancy not-for-profit-organisation problem. Capital receipts/payments are kept out of the Income & Expenditure Account; adjustments for outstanding income and depreciation are made.
>
> **Workings**
> - Subscriptions: 20,000 received + 5,000 outstanding = Rs. 25,000 (income earned this year).
> - Donations Rs. 50,000: capitalise 50% (Rs. 25,000 → Balance Sheet); revenue portion = Rs. 25,000.
> - Life membership Rs. 3,000: capitalise 50% (Rs. 1,500 → Balance Sheet); revenue portion = Rs. 1,500.
> - Buildings 40,000, Furniture 10,000, Sports material 5,000 are CAPITAL payments (assets) — excluded from I&E; only their depreciation is charged.
> - Depreciation: Buildings 5% of 40,000 = 2,000; Furniture 5% of 10,000 = 500; Sports material 10% of 5,000 = 500; total = Rs. 3,000.
>
> **Income and Expenditure Account for the year ended 31.03.2015**
>
> | Expenditure | Amount (Rs.) | Income | Amount (Rs.) |
> |---|---|---|---|
> | To Expenditure on sports | 7,000 | By Subscriptions (20,000 + 5,000) | 25,000 |
> | To Newspapers | 1,500 | By Donations (50% revenue) | 25,000 | …

Receipts	Amount (Rs.)	Payments	Amount (Rs.)
To Subscriptions	20,000	By Buildings	40,000
To Donations	50,000	By Furniture	10,000
To Life membership fees	3,000	By Sports material	5,000
To Income on sports	17,000	By Expenditure on sports	7,000
To Sundry receipts	5,000	By Newspapers	1,500
To Sale of old newspaper	500	By Land maintenance expenditure	4,000
		By balance c/d	28,000
Total	95,500	Total	95,500

Expenditure	Amount (Rs.)	Income	Amount (Rs.)
To Expenditure on sports	7,000	By Subscriptions (20,000 + 5,000)	25,000
To Newspapers	1,500	By Donations (50% revenue)	25,000

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